Dogecoin down 8%, bitcoin under $84,000 as Treasury yields hit highest level since 2007
Cryptocurrency markets, led by Dogecoin and Bitcoin, experienced significant declines, with Dogecoin falling 7% and Bitcoin dropping below $84,000. This downturn is attributed to rising Treasury yields, which reached their highest level since 2007, making non-yielding assets like crypto less attractive and increasing borrowing costs for leveraged positions.
Why it matters
The article highlights the direct impact of macroeconomic factors, specifically rising government bond yields, on the volatile cryptocurrency market, indicating a broader shift in investor sentiment towards safer assets.
DOGE took the worst of it, falling 7% to just above 9 cents. ZEC, XRP and HYPE each lost between 5% and 6%, while ether, SOL and BNB fell 2% to 3%. TRX held flat.
Brent crude turned first, climbing more than 4% to nearly $104 a barrel and ending a six-session slide that had been easing inflation worries. S&P Global's flash survey of U.S. businesses followed, showing output growing at its fastest pace in more than five years, with the composite index at 58.4, its highest since July 2021.
The Treasury's $70 billion sale of five-year notes landed later in the day and drew weak demand. It cleared at 5.033%, the highest auction yield since 2006 and about 3 basis points above where the notes traded just before the sale, meaning buyers demanded extra yield to take on the debt.
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